Correlation Between Namwiwat Medical and Somboon Advance
Can any of the company-specific risk be diversified away by investing in both Namwiwat Medical and Somboon Advance at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Namwiwat Medical and Somboon Advance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namwiwat Medical and Somboon Advance Technology, you can compare the effects of market volatilities on Namwiwat Medical and Somboon Advance and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Namwiwat Medical with a short position of Somboon Advance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namwiwat Medical and Somboon Advance.
Diversification Opportunities for Namwiwat Medical and Somboon Advance
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Namwiwat and Somboon is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Namwiwat Medical and Somboon Advance Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Somboon Advance Tech and Namwiwat Medical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Namwiwat Medical are associated (or correlated) with Somboon Advance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Somboon Advance Tech has no effect on the direction of Namwiwat Medical i.e., Namwiwat Medical and Somboon Advance go up and down completely randomly.
Pair Corralation between Namwiwat Medical and Somboon Advance
Assuming the 90 days trading horizon Namwiwat Medical is expected to under-perform the Somboon Advance. But the stock apears to be less risky and, when comparing its historical volatility, Namwiwat Medical is 2.82 times less risky than Somboon Advance. The stock trades about -0.19 of its potential returns per unit of risk. The Somboon Advance Technology is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,080 in Somboon Advance Technology on November 27, 2024 and sell it today you would earn a total of 150.00 from holding Somboon Advance Technology or generate 13.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namwiwat Medical vs. Somboon Advance Technology
Performance |
| Timeline |
| Namwiwat Medical |
| Somboon Advance Tech |
Namwiwat Medical and Somboon Advance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namwiwat Medical and Somboon Advance
The main advantage of trading using opposite Namwiwat Medical and Somboon Advance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namwiwat Medical position performs unexpectedly, Somboon Advance can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Somboon Advance will offset losses from the drop in Somboon Advance's long position.| Namwiwat Medical vs. Chularat Hospital Public | Namwiwat Medical vs. Nonthavej Hospital Public | Namwiwat Medical vs. Bhiraj Office Leasehold | Namwiwat Medical vs. Wattanapat Hospital Trang |
| Somboon Advance vs. AAPICO Hitech Public | Somboon Advance vs. Thai Stanley Electric | Somboon Advance vs. Hana Microelectronics Public | Somboon Advance vs. TISCO Financial Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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